Russian President Dmitry Medvedev and his Mongolian host on
Wednesday honoured veterans on the 70th anniversary of a key pre-World
War II battle in which Soviet and Mongolian forces defeated Japan.

Medvedev
and Mongolian President Tsakhiagiin Elbegdorj laid wreaths at a
monument in Ulan Bator honouring Georgy Zhukov, who led the combined
forces into a tank battle against the Japanese near the Khalkhyn Gol
river in 1939.

"This is truly our common victory," Medvedev said,
praising the "spirit of trust and the spirit of support" binding the
two nations.

"The Soviet and Mongolian soldiers fought for the right cause."

The
Russian leader, who arrived on Tuesday for a two-day visit, bestowed
medals on veterans from both countries at the ceremony, which ended
with a Soviet-era anthem played by a Mongolian military band.

According to official estimates, more than 18,500 Soviet and Mongolian soldiers died, while Japan lost about 60,000 soldiers.

The ceremonies come as the world prepares to mark the 70th anniversary of the outbreak of World War II in September.

Elbegdorj said the Mongolian people would never forget the "military aid rendered by the Soviet Union and the Soviet people".

"Mongolia remembers the decisive role played by the Soviet Union in the defeat of fascism," he said.

Mongolian
veteran Damdinzhav Tsagaan, bedecked in military medals, beamed with
pride at his role in the battle, and the strong ties between the
neighbouring states.

"I believe that our two countries will be
united forever," said 100-year-old Tsagaan, who wore traditional
Mongolian dress and hat.

Another veteran, 93-year-old
Gendendarzhan Tsogt, said: "Japan would have conquered Mongolia if not
for the Soviets. We all remember this."

Russian infantry veteran
Yury Zavidonov, 88, who travelled from Moscow to join the celebrations,
said: "It was a victory that slightly cooled the Japanese and their
belligerent spirit."

The event comes as Russia seeks to revive
ties with Mongolia, a former Soviet satellite that is rich in mineral
resources such as coal, gold, copper and uranium.

On Wednesday, the two countries agreed to form a joint venture to exploit the Dornod uranium deposit.

Other nations are vying to obtain access to Mongolia's vast resources,
but Medvedev suggested Moscow had a competitive edge due to historical
ties between the countries: "History is such a stubborn thing that can
be neither forgotten nor changed."

The Mongolian president said the bilateral ties had been "sealed by the blood and sweat of our peoples."

Medvedev's
visit comes just three months after one by Prime Minister Vladimir
Putin, highlighting the importance Moscow is placing on breathing new
life into ties with Mongolia, which lies between Russia and China.

In
honour of the Russian president, Mongolia staged a mini-version of its
traditional Naadam festival featuring horse racing, wrestling and
archery in the steppe outside Ulan Bator.

Medvedev tried his hand with a bow and arrow, and drank fermented horse milk, a popular beverage in Mongolia.

The two presidents also observed joint military exercises on the outskirts of the capital.